GTA services

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CA Rakhi Govil (Querist)

01 December 2010 Respected experts
we are a manufacturing co.Certain GTA servises are received by us.Whatever we pay to agency,we pay ST on 25% of paid amount.
My question is this,that whether can we avail tax paid as ST as cenvat credit??which return we have to file??and in the return where we will show the paid amount and what will b manner of showing the paid amount in the return and its cenvat credit.

Rajesh Kumar

Rajesh Kumar (Expert)

01 December 2010 Yes, credit of ST paid is available.
In excise return, you will show the cenvat of Service Tax paid. In 6 montly service tax return, you will give particular of service tax paid.

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CA Rakhi Govil

CA Rakhi Govil (Querist)

01 December 2010 Thank you sir,
my further question is this at present we are not availing CENVAT on ST paid. But we want to do same.as we are manufacturerof duitable and exempted goods both. then how will we use this CENVAT credit availed of ST paid?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

01 December 2010 Refer ro rule 6 which provides the methodlogy. Be careful and follow the law structly as there have been some disputes here.

CA Rakhi Govil

CA Rakhi Govil (Querist)

02 December 2010 thanks Madhukar sir

sir my another question is this when we pay ST on GTA servises as a consignee, we abate 75% amount from the total amount paid and then calculate ST.should I treat this 25 % amount as including ST or excluding ST?

CA Apurav Agawal

CA Apurav Agawal (Expert)

03 December 2010 Dear Rakhi

See your question yourself.
ST paid on 25% amount is the cenvat input.
100% you have aready paid to the transporter. Now the service tax paid on 25% is fully entitled for credit, no bifurcation for including service tax or excluding service tax.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

08 December 2010 CENVAT Credit can be taken of the amount of ST paid. The CESTAT (Tribunal) has held in a number of cases that payment made as GTA is eligible for CENVAT Input, both towards payment of Service Tax and in your case as a manufacturer for payment of CEx also. But please do keep the necessary documents ready and follow the Rules strictly. As your advisor would highlight CEx is a procedure driven law and hence follow the procedures strictly to avoid disputes later.

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